Question

a small nation has followed protectionist policies for many years. which action is an example of a nontariff barrier established there? select one: a. participation in the uruguay round of gatt negotiations. b. establishment of restrictive quality standards requiring foreign firms to make expensive modifications to their products before they can be imported. c. establishment of a tax levied on imported goods designed primarily to raise money for the government. d. establishment of a tax levied on imported goods so that foreign products are more expensive than competing domestic goods.

Explanation:

Nontariff barriers are trade - restricting measures other than tariffs. Option a is about trade negotiations, not a barrier. Options c and d describe tariffs. Option b, setting restrictive quality standards that force foreign firms to make costly product modifications, is a nontariff barrier as it restricts imports without using a tax.

Answer:

B. Establishment of restrictive quality standards requiring foreign firms to make expensive modifications to their products before they can be imported.